National Republican., 1887-05-13
MoRlsINI GIVES EVIDENCE.
At Least He is Questioned But II,
Knows Nothing.

New YORK, May 12.--The investigation
before the Pacific railway commission
opened to-day, with e. P. Morosini on the
stand. He was Of the firm Of w. Z. Connor
& Co., bankers and brokers, from 1870 to
1885. Jay Gould and his son George were also
members of the firm. The names of the
confidential clerks Of the firm In 1880 were
given. Witness knew nothing of the books
of the firm. They were under the direction
Of Mr.. Connor, who had charge Of the
brokerage business Of the concern. He
continued:
~ had been troubled about the books OF
the company, and asked Mr.. Connor where
they were, and he only smiled. never
asked Mr.. Gould where they were, but Mr..
Gould testified on the stand that he knew
nothing about them. Mr.. Gould is man
OF few words, and l did not bother him
Commissioner Anderson asked Mr.. Nor
osini:
"Are you afraid Of Mr.. Gouli9"
~ am not afraid Of anything. tried In
every way in my power to find the books,
"Why, then, did you not ask Mr.. Gould
where they were ~
i
about It,. Mr.. Connor had charge Of these
matters.n
"And Mr.. Connor only smiled when you
asked him about the books?"
II suppose that was ALL heard consid-
cradle about the consolidation of the Union
Pacific and Kansas Pacific railroads, but
not from Mr.. Gould or Mr.. Connor. /
heard Union Pacific men talking about it.
Mr.. Ham and others. know that Mr..
Gould was large holder of Union Pacific
stock, which he Kept In his vault. do not
know that he had made large purchases of
Kansas Pacific stock just prior to the con
solidation. / do not remember that
signed the ratification for the consolidation
as a holder Of over $20O0,000 Of Kansas
Pacific stock. They sometimes put stock
in other peoples haLds for convenience,
and that might have been the case in this
mattern
When asked II he had any suggestions to
make or further information to give, Mr..
Morosini said that he had not, and thought
that the legal talent OF the commission
ought to be sufficient to elicit all the in
formation II required. The witness was
hereuprn allowed to depart amid the gem
eral hilarity OF those present.
Russell Sage, who has been banker and
broker for over twenty years. was examined
as to his books kept from 1878 to 1880 and
his clerical employees at that time, but anti
cipated The desire of the commissioners by
holding up a package Of papers and saying:
~ have all my books and am prepared here
to give the commission all the information
1t desires. / made my first purchases of
stock Of the Union Pacific in 1869 or 1870,
paying therefor 20 or 81 cents for about one
thousand shares. was requested to serve
as director Of the road, because was a
large stockholder. 1 had considerable .
amount OF stock In the Missouri Pacific,
and gradually increased my interest
In the Kansas Pacific, st. Joseph an
Western, and Kansas and Nebraska.
bought in open market, but consulted wit
Sydney Dillon, Jay Gould, James r..
Keene, Addison Cammack, and Others"
Mr.. Sage produced record of his deal
ings In Kansas Pacific stock ana bond; /;
from July, 1878, to February, 1880, an
promised similar record with reference to
st. Joseph and Western. Knew of st. Louis
pool in 1878 and was interested in 1t to the
extent Of 100000.
Nathaniel Niles, a government director
OF the Union Pacific for the year 1879, swore
that he attended the meetings of the board
and examined the books of the company at
the main Office In Boston. He was a mem.
Der OF the finance committee and atteuied
all the meetings Of the directors excepting
one. He said:
"The conclusions OF my examinations
were tnat II tDe pOncy OF tne management
was carried out the government demands
against the road would b satisfied. heard
OF the consolidation first through the public
prints and afterward from directors, but
what directors do not now remember.
Don't know whether was present at the
consolidation. My opinion as an individ-
ual was that | considered the con-
solidation of benefit TO the Union Pacific.
The government directors had a separate
mi fsul,t t.l. al, al.
smy th kept the minutes Of the proceedings.
do not know where they areh
Commissioner Littler desired to know of
witness II his appointment as government
director was not for the purpose Of looking
after the interests of the United States, aud
when he answered that 1t was, he was
asked IL he looked carefully into the con
dition Of the Kansas Pacific road before
coDsentipg to the consolidation. He said
that he did, ana the conclusion arrived az
was that 1t was a wise act, but he could not
give the details leading to the conclusion.